Latest edition: In this handbook, KPMG explains the leases standard (ASC 842) in detail. We provide detailed Q&As, examples and observations, as well as comparisons to legacy US GAAP.
Applicability
ASC 842 (ASU 2016-02 Section A, ASU 2016-02 Section B, ASU 2016-02 Section C, ASU 2018-01, ASU 2018-10, ASU 2018-11, ASU 2018-20, ASU 2019-01, ASU 2019-10, ASU 2020-02, ASU 2020-05, ASU 2021-05, ASU 2021-09)
- All companies with leases in the scope of ASC 842
Relevant dates
| Effective date | Public business entities and certain other entities* | All other entities |
|---|---|---|
| Annual periods – Fiscal years beginning after | In effect | December 15, 2021 |
| Interim periods – In fiscal years beginning after | In effect | December 15, 2022 |
| Early adoption allowed in fiscal years beginning after | In effect | Yes |
| * (1) public business entities; (2) not-for-profits that have issued, or are conduit bond obligors for, securities that are traded, listed or quoted on an exchange or an over-the-counter market; and (3) employee benefit plans that file financial statements with the SEC. | ||
Report contents
- Scope and definition of a lease
- Identifying and separating components of a contract
- Concepts and definitions applicable to lessees and lessors
- Lessee accounting model
- Lessor accounting model
- Subleases
- Sale-leaseback accounting
- Income tax effects
- Leases acquired in a business combination or asset acquisition
- Disclosures, effective dates and transition
Download from KPMG FRV